24.01.201414:10 Forex Analysis & Reviews: Elliott Wave Analysis of EUR/JPY for January 24, 2014

Long-term review

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Today's Support and Resistance levels:

R3: 141.43

R2: 141.03

R1: 140.74

Current spot: 140.45

S1: 139.59

S2: 138.61

S3: 137.99

Technical summary:

The red wave ii correction ended slightly before the ideal target at 142.64 (the high came in at 142.42). The powerful decline that followed the high at 142.42 confirms that red wave iii lower towards at least 139.59 is developing. However, we will be looking for a much deeper decline in red wave iii towards 137.99 as the most likely target for red wave iii.

In the short term we expect minor resistance at 140.74 will be able to protect the upside for the next part of the decline, but even if minor resistance at 140.74 is broken, strong resistance will be seen at 141.03 and this resistance should protect the upside without any problems.

Trading recommendation:

Stay short in EUR from 141.85 and lower your stop to 141.80. If you are not short in EUR yet, then sell EUR close to 140.74 with the same stop at 141.80.

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